Board of Commissioners Meetings

Superintendent's Recommendation:

MOTION TO APPROVE THE 2026 GENERAL FUND OPERATING BUDGET IN THE AMOUNT OF $55,413,013; AND FURTHER, AUTHORIZE THE SUPERINTENDENT AND CHIEF FINANCIAL OFFICER TO FORWARD THIS DOCUMENT TO THE HENNEPIN COUNTY BOARD OF COMMISSIONERS FOR REVIEW PURSUANT TO STATE LAW.

Prepared By: Howard D. Koolick, Chief Financial Officer

Background:

Development of the Park District’s 2026 General Fund Operating Budget began in early summer. The Superintendent led senior staff through multiple budget discussions where options and issues were discussed and evaluated. This process led to several budget discussions with the Board during the fall and resulted in a budget that supports the following goals for 2026:

• Continue to provide high quality facilities, programs, and recreational opportunities.
• Continue to manage natural resources, be a leader in natural resource management issues and educate the public on natural resource management issues.
• Continue implementation of the System Plan by providing a wide range of services to Park District users both within existing park locations and in resident’s local communities.
• Use non-property tax revenue to fund needed budget increases.
• Prepare the Park District for change and unforeseen challenges.

The attached 2026 General Fund Operating Budget document shows the Park District's operating budget goals, challenges, and how funds are going to be received and expended.

The public was invited to comment on the budget at a public hearing held prior to the Commissioners considering adoption of the budget.

The major revenue changes for the 2026 budget totaling $2,156,364 include:

• A 4.8% increase in the total property tax levy which results in an increase for the General Fund of $1,630,000.
• Park use revenue estimate increases for a variety of locations and revenue streams combined with fee increases for some passes resulting in an increase of $154,200. (fee increases are proposed for swim ponds, tubing, cross country skiing, summer camps, and shelter rentals)
• Met Council Lottery-in-lieu-of and equity grant increases totaling $275,000. Interest and other miscellaneous revenues are being increased by $97,164 based on amounts collected in past years.

The major expenditure changes for 2026 budget, which total $2,156,364 are:

• Inflationary increases for union employees in addition to continuation of the existing step program as outlined in their contracts.
• A 2% inflationary increase for non-union employees combined with the existing merit pay program with an increased growth factor for pay ranges.
• Increased costs for health, life, and dental insurance due to increasing premiums. State mandated participation in the paid Family and Medical Leave program. Increased contribution to the District’s Equipment ISF Fund to manage the costs of operating and maintaining the District’s fleet of vehicles and equipment.
• Increased utility and contractual costs whose increases are based on rising prices and are beyond the Park District's control.
• Increases in a variety of operating costs to continue to provide existing services to the public.
• Reallocation of three vacant full-time positions to fund two positions that will provide increased service when compared to the three vacant positions.
• A minor increase in the contingency amount to allow the District to react to unforeseen issues during the year.

Upon approval of the budget, the Park District, in accordance with state law, must submit the operating budget to Hennepin County for their review. The County Board has 15 days to review and recommend changes to the Park District’s Board. Staff will be delivering the budget to the County on Friday, November 14, 2025, The County will discuss the budget at its meeting on November 18. Part of this discussion will be a presentation by the Superintendent.

The final phase of the budget process is the approval of the 2026 property tax levy. This item, including a resolution, will be presented to the Board for adoption on December 18, 2025. In addition, any comments from County Commissioners will be reviewed with the Board at that time.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

The Request for Action supports the goals of the System Plan by providing and properly managing the financial resources of the Park District.

Attachments:

2026 General Fund Budget Book.pdf

Superintendent's Recommendation:

MOTION TO ADOPT RESOLUTION NO. 25-23, A RESOLUTION AWARDING THE SALE OF $9,155,000 GENERAL OBLIGATION BONDS, SERIES 2025A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT.

Background:

On October 16, 2025, the Board of Commissioners authorized the Chief Financial Officer (CFO) to prepare the official statement, set sale conditions and solicit bids for the $9,325,000 2025 General Obligation Bonds. These bonds, in combination with a variety of additional funding sources, are to provide the funds necessary to carry out the projects listed in the 2025 Asset Management Program (AMP).

The CFO has been working with the Park District’s Fiscal Advisor, Public Financial Management (PFM) and the Park District’s bond counsel, Taft Stettinius & Hollister, LLP, to issue the official statement and prepare for the sale. During this process market conditions changed allowing the size of the bond issue to be reduced to $9,155,000 and the length of the bonds to be decreased by one year. Neither of these changes will impact the projected annual tax levy that will be needed.

The CFO also requested a rating on these bonds and discussed the bond issue with Moody’s Investor Services. The Park District currently holds a ‘Aaa’ rating from Moody’s. The discussion with the Moody’s representatives went very well with no major questions or issues raised. On November 4, 2025, Moody’s confirmed and published the Park District’s ‘Aaa’ rating. They cited the District’s very large, diverse tax base along with a strong financial position, supported by strong management and ample flexibility to adjust user fees and staffing levels to match demand as reasons for the strong rating.

The bonds are being sold by competitive bid with bids due on the morning of November 13, 2025. Bond counsel will complete the multi-page resolution that will include the details of the bond issue including the name of the successful bidder, the interest rate and required tax levies. A draft of this resolution is included with blanks that will be completed once the bids are received. The completed resolution will be e-mailed to Commissioners several hours before the meeting on November 13, 2025.

The bonds being sold are general obligation bonds, which require the Park District to levy property taxes to provide funds for their repayment. The information presented on October 16, 2025, estimated the property tax levy to be $675,000 annually starting in 2025 and going through 2050. The CFO will update the Board on the actual levy required for the bonds since it is dependent on the interest rates and final structure of the bonds.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 2: Parks Matter

Goal 3: Lead by Example

by financing park improvements as part of a well-planned and managed long-term debt strategy.

Attachments:

RESOLUTION AWARDING THE SALE OF GO BONDS, SERIES 2025A.pdf

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Background:

Commissioners are encouraged to share announcements and discuss ideas for future topics of interest.

Attachments:

Board Proposed Discussion Topics.pdf